This trial is conducted in Europe. The aim of this trial is to compare the efficacy of metformin and repaglinide used alone or combined administered as initial treatment in subjects with type 2 diabetes in which diet and exercise have failed.

Inclusion Criteria:

• Subjects with type 2 diabetes
• Treated by diet for at least 3 months
• Never treated with hypoglycaemic drugs
• HbA1c (glycaemic haemoglobin A1c) on inclusion time superior to 6.5%

Exclusion Criteria:

• Very symptomatic diabetes
• Advanced vascular complications
• Manifest renal failure
• Manifest hepatic disease
• Pregnancy, breast feeding or intention to become pregnant or if it is considered that the patient is not using adequate contraceptive measures. Adequate contraceptive measures are considered to be an intrauterine device, oral contraceptives and barrier methods